G/SCM/Q2/CHN/97  
26 January  2021 
(21-0732) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
FOLLOW -UP QUESTIONS1 POSED BY THE UNITED STATES REGARDING  
THE 2019 NEW AND FULL NOTIFICATION OF CHINA2 
The following communication, dated 25  January  2021, is being circulated at the request of the 
delegation of the United States . 
 
_______________  
 
 
Question 1  
In response to numerous questions regarding specifically identified programs in China that were not  
included in China 's notification, China responded by stating that China will not answer questions with 
respect to programs not included in China 's notification.  Given that the purpose of reviewing 
Members ' notifications is to increase the transparency of each Members ' programs and that the 
general practice of all other Members is to answer such questions, please explain the reasoning 
behind China 's refusal to answer in writing any questions on programs that  were not included in its 
notification, even if the title and legal citation for the program is provided?  
Question 2 
Please explain what a "public service platform " is. 
Question 3 
Based on the United States' review of the MOFCOM Gazette, it appears that none of the legal 
measures referenced in the sub -central portion of China's notification have been published in the 
MOFCOM Gazette as China is obligated to do under China's Protocol of Accession . The United States 
considers China 's transparency obliga tions under its Protocol of Accession to be critically important.  
In addressing this concern, China replied that "Verification is underway with relevant departments ." 
Why was a verification with the relevant departments necessary?  Does China accept its obl igation 
to publish the legal measures that establish and implement its subsidy programs at all levels of 
government?  
Question 4 
In Question 13 of our original questions, the United States asked : According to the Domestic Refined 
Fuel Price Reform Upward Ad justment According to the System notice issued on December  2, 2019 
(and earlier iterations of this program), purchasers of diesel fuel in the fishery sector enjoy a 
preferential price compared to other retail purchasers, based on a state determined sales price . Does 
China intend to notify this program and publish it in the MOFCOM Gazette?  China responded stating : 
"China has not implemented the measure mentioned by the US, and purchasers of diesel fuel in the 
fishery sector do not enjoy a p referential price compared to other retail purchasers ." However, we 
note that China appears to have continued to implement the measure throughout 2020, issuing 
adjustment notices for the program on a near -monthly basis . Moreover, the latest Domestic Refine d 
Fuel Price Reform Upward Adjustment According to the System notice was just issued by the National 
 
1 G/SCM/Q2/CHN/86 (original questions); G/SCM/Q2/CHN/93 (replies).  
2 G/SCM/N/343/CHN.  G/SCM/Q2/CHN/97  
- 2 - 
  Development Reform Commission on January  15, 2021  (Price Department of the National 
Development and Reform Commission, Domestic Refined Fuel Price Reform U pward Adjustment 
According to the System;  https://www.ndrc.gov.cn/xwdt/xwfb/202101/t20210115_1264991.html ). 
Therefore, it appears the program remains in place.  Please explain.  
Question 5 
Have other provinces , aside from Shandong , implemented distant water fishery subsidy policies at 
the municipal level?  
Question 6 
This question was not answered with respect to the subs -central programs listed below.  For each of 
the sub -central fishing programs identified below, how much of the funding is used to : (1) decrease 
the operation costs of domestic marine vessels, (2) decrease the operation costs of distant water 
vessels, (3) reward distant water fishing vessels for bringing cat ch back to China for processing, 
(4) provide insurance and other income supplement to fishermen during a moratorium on fishing, 
or (5) support vessel refurbishing ? The programs for which this question was not answered are : 
Zhejiang Province (Grant for poli cy-based fishery mutual insurance ; and Fund for marine and fishery 
comprehensive managemen t and industr y development) ; Fuzhou City, Fujian Province (Fund for 
fishing ports) ; Shandong Province (Fund for distant water fishery development) ; Production and 
living allowance for fishermen during fishing close seasons ; Fund for aquaculture ; and Living 
allowances for fisherman during fishing close seasons) ; Dalian City of Liaoning Province (Fund for 
marine and fishery development) ; Qingdao City of Shandong Province  (Fund for distant water 
fishery) ; Ningbo City of Zhejiang Province (Fund for policy -based fishery insurance).  
Question 7 
Is it China 's position that none of the Made in China 2025 related subsidy programs at the sub -central 
level of government provides subsidies contingent upon the use of domestic over imported goods?  
 
__________